Tax Newbie Posted April 12, 2007 Report Share Posted April 12, 2007 I need help some help with the California state tax return. I have a client (couple) that sold their personal resident and qualify for the exclusion of $500,000 gain. I understand that California conforms to Federal law when it comes to gain on sale of the house. I don't know how to handle this in ATX because the software adds the exclusion amount to the state income. How do I take the exclusion gain out to make California taxable income is the same as federal income? Thanks for your help Quote Link to comment Share on other sites More sharing options...
joanmcq Posted April 13, 2007 Report Share Posted April 13, 2007 Do you have form 3885A/D open? That calculates CA differences on capital gains. There may be something happening there. Quote Link to comment Share on other sites More sharing options...
Tax Newbie Posted April 13, 2007 Author Report Share Posted April 13, 2007 Do you have form 3885A/D open? That calculates CA differences on capital gains. There may be something happening there. Yes I do, but I'm not sure where to input the exclusion amount. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted April 13, 2007 Report Share Posted April 13, 2007 It should only be calculating the DIFFERENCES. Check to see where it is adding back the exclusion Quote Link to comment Share on other sites More sharing options...
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